The table below shows the projected free cash flows of an acquisition target. Estimate the following: a) Terminal value at the end of 2023 based on the perpetual growth equation with a 4% perpetual growth rate b) Maximum acquisition price (MAP) as of the end of 2018 at a 9% discount rate YEAR 2019 2020 2021 2022 2023 FREE CASH FLOW ($ thousands) -$500 $83 $87 $89 $92 The Present Value of $1 Table (Table 3) tells us: Period (n) Present Value Factor at 9% Discount Rate 1 .917 2 .842 3 .772 4 .708 5 .650

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